With 100 days remaining until the anticipated approval of the Ethereum spot Exchange-Traded Fund (ETF), the crypto market seems to be all set for major developments and price movements. Bitcoin (BTC) is leading the charge after gaining ETF approval from the US Securities and Exchange Commission (SEC).
Ethereum ETF set to make crypto bull run large
The crypto traders are expecting to hold on to a tight grip as the bulls take off. Experts dropped a breakdown of the phases and potential scenarios for Ethereum (ETH) in the coming months.
The period from February to March will be phase 1 for the biggest altcoin. Ethereum’s Dencun upgrade is scheduled to happen on March 13th. Historical data indicates a potential +50% increase in ETH prices leading up to the upgrade. Anticipation of positive market sentiment as the upgrade approaches.
Ethereum price is already up by 16% in the last 7 days. It is trading at an average price of $2,743, at the press time. This depicts the increased enthusiasm among holders.
However, there will be Phase 2 starting from mid March to April. Bitcoin Halving is scheduled for April 17. Historical trends suggest an average +70% increase in Bitcoin prices around the halving event. The BTC halving indirectly influenced and supported the ongoing ETH rally earlier.
Phase 3 is set to begin in May as a decision on 7 ETH Spot ETFs may come by May 23. It is reported that market awareness of the positive impact of spot ETF launches, as seen with Bitcoin ETFs resulted in an +80% BTC surge. The Ethereum ETF decision is expected to mitigate the potential “Sell the News” dip post-EIP-4844.
What does Bitcoin ETF suggest?
If we take a look at Bitcoin ETF inflow and put it into Ethereum supply dynamics, it presents a very optimistic outlook. According to the data, daily inflows of over $500 million into markets via Spot Bitcoin ETFs indicate positive market sentiment.
ETH on exchanges is decreasing. It is influenced by factors like The Merge Burning, EIP-1559, Liquid Staking, and other Ethereum projects launching in the first half of 2024.
As we take a look at Wall Street Interest around ETH Staking then ARK 21Shares’ interest in staking Ether sets a precedent for institutions to include staking in ETF proposals. On the other hand, Franklin Templeton’s entry into the competition for a spot Ethereum ETF signals growing interest from asset management firms.
Data depicts a rising demand for ETH staking with the potential for staking participation to exceed 50% after the ETH ETF launch.
Get Premium Crypto Trading Signals from Real Crypto Analysts. Join our official Waiting List at todayq.com.
